Consumer Analysis:

CHIPOTLE

By: Solomon Quinn, Brian Grierson

12-4-14

Dr. Lascu

Changing Consumer Culture

Table of Contents:

Introduction and Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 1

Literature Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 3

Hypotheses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 10

Exploratory Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 12

Data Collection Method Description . . . . . . . . . . . . . . . . . . . . . Page 13

Findings, Conclusions, and Managerial Implications . . . . . . . . Page 14

Data Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 16

Digital Story (Narrative) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 25

Data Collection Template . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 27

Works Cited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 28

1

Introduction and Purpose:

Chipotle has established itself as a leader in the fast food industry, changing the very

perception of fast food itself. Chipotle’s concern for health and natural ingredients has set it apart

from other big chains such as McDonald’s and Burger King. Its motto, “food with integrity,” is

well suited for their business practices, as Chipotle maintains organic standards and looks for the

best quality possible, even if it means a slightly higher price for its products. Chipotle has created

a cult like following, with very high customer loyalty, proving the success of its business model.

Although people of every age and ethnicity seem to be drawn to this chain, one demographic

stands out as firmly in Chipotle’s grasp. According to Beyond the Burrito: Chipotle’s Next Big

Move, by Scott Davis in Forbes, millennials are the biggest group of consumers for the company,

providing for a large portion of Chipotle’s revenue. Chipotle stands for everything the younger

population believes in, whether it be the organic food, the general conscientiousness for the

environment, or the silly anecdotes written on napkins and cups. Largely due to its success with

the millennials, Chipotle’s revenues had tripled to $2.2 billion between 2006 and 2012,

according to How Chipotle Changed Fast Food Forever, by Danielle Schlanger and Kim Bhasin

of Business Insider. In 2013, Chipotle had all of 1,600 locations with revenue of roughly $3.21

billion for the year.

In this consumer analysis, we hope to look into various consumer tendencies at Chipotle.

Our research should prove to be useful to Chipotle in understanding the consumer decision-

making process. We will collect data on many topics having to do with the variety of each

purchase, as we look to examine how certain demographics can explain the way in which

Chipotle customers buy. We will investigate the burrito versus bowl dilemma, the choice of extra

meat or guacamole despite a raised price, and the number of people requesting water cups as

2

opposed to buying soda. For each customer with a water cup, we will look at his or her "honesty"

with regard to actually filling this cup with water. We will also conduct about five face-to-face

conversations with customers to get a more in-depth look at their motives for eating at Chipotle.

We will ask them questions to gain a better understanding of why they like the company, and

what, in their mind, distinguishes the brand from its competitors. These conversations will help

us better interpret the vast data that we will be collecting, as the small sample will hopefully be

representative of the overall population. For gathering our large set of data, we will use a

template and record as much information as possible about every consumer. Consumer

characteristics include gender, race, an estimate for age, and an estimate for socioeconomic

status. We believe there could be correlations between some of these variables, and if found,

these correlations could prove very useful to Chipotle and its future business decisions. In the

process as a whole, we will analyze the data both qualitatively and quantitatively, using

statistical tests and subjective interpretations of what we see in order to help Chipotle continue

its success in the future.

3

Literature Review:

Industry:

        Fast-casual dining is a growing sector within the food industry, catering to the evolving

demands of the twenty-first century consumer. The industry has been able to bring together the

positive aspects of both fast-food and sit-down dining, offering great deals on food with high

quality ingredients. In today's fast-paced, technology-driven world, consumers want their food

prepared almost instantly, but are also more aware of what they are eating from a health

standpoint. As a result, the fast-casual businesses with fewer processed foods have seen more

success than traditional fast-food chains. Consumers may also enjoy the dining experience more

at a fast-casual restaurant, as opposed to the cheap and hurried atmosphere in the fast-food

business (Duprey, 2014).  

        These preferences--along with high levels of obesity--have put pressure on many fast-

food chains to conform to healthier standards, with childhood obesity in particular becoming a

crucial issue. This concern has forced the likes of McDonald's and Burger King to follow the

standards set by the fast-casual enterprises, introducing options such as fresh fruit and vegetables

to go along with Happy Meals (Health and Wellness in the US, 2014).

        As a result of the trend favoring healthy dining, protein is increasing in popularity. Many

fast-casual restaurants now offer consumers a variety of protein products, adjusting to their

changing preferences (SA Transcripts, 2014). Protein is thought to increase satiety of food,

decreasing the consumption of empty calories. Gluten free products and organic beverages are

also gaining approval among consumers, with supermarkets as well as restaurants providing

more options in this regard (Health and Wellness in the US, 2014).

4

        The worldwide population is becoming more aware of the mistreatment of farm animals,

beginning to respect animals' rights (Thomele, 2013). According to the article, global sales of

fruit and vegetables have grown substantially as a result. Of the remaining meat-eaters, many are

limiting themselves to humanely treated animals. A 2004 study in Scotland examined the

philosophy behind ethical consumption . This publication found the significant psychological

difference between an individual's purchase behavior and overall moral standards (Schroder,

2004). People may fundamentally believe in a better life for farm animals while avoiding any

cognitive connection with the animals themselves at the point of purchase. Although somewhat

outdated, the findings in this article may still be relevant in explaining the difference between

individuals who choose to eat ethically and those who do not.

        Much of the American fast food industry is growing into Canada instead of expanding

business in the United States. Canada's economy is expanding rapidly and many brands want to

take advantage of its underdeveloped market. The culture and language is, for the most part, very

similar in the two countries, and Canada's plethora of independent restaurants makes room for

the expansion of chains across the border. Chipotle opened up shop in Canada in 2008, as did

Panera Bread, and both companies have seen success in their new locations. However, other

companies such as  Dunkin' Donuts and Krispy Kreme Donuts quickly went out of business

when competing in the new market (Beer, 2012). This could be due to the dominance of Tim

Hortons, Canada's most popular doughnut and coffee chain. The brand has become a national

icon since the recession of the early 2000s, continuing to outperform its competitors while

establishing its dominance in the country (Why does Canada love Tim Hortons?, 2014).

Canadian consumers seem to value quality much more than their American counterparts, also

explaining the success of the fast casual restaurants like Chipotle and Panera Bread and the

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failures of Dunkin' Donuts and Krispy Kreme Donuts, maybe "cheaper" and more "deal driven"

companies. These subtle differences in consumer culture must be picked up if an enterprise

wants to be successful in a new market (Beer, 2012).

        One seemingly constant element of consumer culture worldwide is the emergence of

millennials and their influence on the economy. Millennial Segment Uncovered, by Nielsen

describes the demographic as connected deal shoppers who desire authenticity and want a

personal touch. Businesses must provide high quality products, have involvement with social

impact programs, and connect with their customers online if they want support from this coveted

portion of the population. The segment is becoming more and more affluent and may have

caused the rise of the fast casual concept altogether. Chipotle, for example, represents the ideal

millennial brand, providing its customers with easy Wi-Fi and following through on its mission

of "food with integrity," among other millennial oriented marketing tactics. Convenient internet

access and a corporate philosophy favoring animal rights add to the appeal of the chain,

especially for these young consumers (Nielsen, 2014).

Competition:

        In 2013, Chipotle ranked second in both Latin American fast food and fast-casual dining,

behind Taco Bell and Panera Bread, respectively. However, Chipotle is growing at a faster rate

than the other two brands, a positive sign for the company's future. Taco Bell decreased in value

since 2008, while Chipotle's shares have grown at an impressive rate over the same period

(Chipotle Mexican Grill Inc in Consumer Foodservice, 2013). According to Panera vs. Chipotle:

A tale of two restaurants, by Michelle Fox, Panera reported a 4 percent decline in its second-

quarter profit while Chipotle stock rose by $3.50 per share as of July 29, 2014 (Fox, 2014).

6

        Despite this downturn, Panera has shown steady growth since August, increasing in value

and implementing some changes. The company introduced Autumn Squash Soup using

antibiotic-free turkey, appealing to environmentally conscious consumers. Panera also hopes to

better the consumer experience and improve sales with digital innovation (Jones, 2014).

        Taco Bell has a bright outlook, with Yum! Brands Inc. expanding to China and showing

signs of success in the foreign market. Already with 40% of its income coming from operations

in China, a continued improvement abroad could catapult the brand to high levels of growth in

the future (Yum!'s Growth Opportunity, 2014). The company has added Cantina Bowls and

Cantina Steak Burritos to its menu, cheaper alternatives to Chipotle's burritos and bowls. These

additions may give Taco Bell a competitive advantage over Chipotle, offering consumers a

similar product at a lower price (Yagalla, 2014).

        Another source of competition for Chipotle is McDonald's, the ultimate American fast-

food brand. McDonald's, as the older and significantly more widespread company, earns far

more in total sales than Chipotle. However, with respect to earnings per square foot, Chipotle

had a 22.7% advantage over McDonald's in 2013, growing at a faster rate and investing more of

its money on capital improvements. Overall, Chipotle seems to be the better option for long-term

investors (Beyers, 2014).

        Contrary to its competitors, Chipotle does not franchise itself, meaning all locations are

owned and run by the company. With this business model, Chipotle cannot expand to the extent

of the other big chains, but will operate more efficiently making more money per restaurant than

its counterparts. The creation of ShopHouse (Same idea as Chipotle, but applied to Southeast

Asian cuisine) should add to the company's future profits; the corporation will appeal to a wider

demographic, featuring a greater variety of high-quality cuisine (Bowman, 2014).

7

Marketing:

        Although not typically engaged in sales promotion, Chipotle again sold its burritos for

only $3 this Halloween, with proceeds benefiting the Chipotle Cultivate Foundation. An example

of one of Chipotle's efforts to better the world, this fundraiser also provided its customers with

the opportunity to participate in a costume contest. Additionally, the event added the valuable

element of personal touch, rewarding consumers for their creativity and giving them a sense of

genuine connection to the brand. The Chipotle Cultivate Foundation supports like-minded

organizations that also believe and partake in responsible farming and provide their customers

with fresh and natural ingredients (Chipotle; Chipotle Celebrates Halloween with Boorito, 2014).

        Aside from its high-quality food, Chipotle has been successful in advertising its brand

and platform through the computer-animated commercials "Back to the Start" and "The

Scarecrow." The videos were produced by Mark Crumpacker, Chipotle's chief marketing and

development officer who was able to clearly convey Chipotle's platform to consumers around the

world. The short films have generated over 500 million media impressions, an operation that

would have cost the company $7 million had it been a traditional ad campaign. Chipotle founder

Steve Ells says Crumpacker "was able to brilliantly convey this idea of the importance of where

your food comes from" (Beltrone, 2014).

Consumers:

        Ells is excited about the company's popularity with the younger generations, saying that

millennials and teens "are more concerned with how food is raised and prepared than previous

generations and are willing to seek out and pay a little more for something they recognize as

better, better tasting, better for the environment, and better for their wellbeing." Other chains

8

have tried to appeal to the same demographic, introducing healthier options themselves in

response to Chipotle's incredible success (Lutz, 2014).

        Chipotle's ability to create a loyal consumer following is made evident by the company's

nearly seamless transition to higher prices. The price hike is a result of a prolonged drought in

California making avocados more expensive, as well as a decline in cattle supply creating

record-high beef prices (Jargon, Rubin, 2014). Still, same-store sales have been on the rise, as the

company continues to increase its profits.

Concerns:

        There is limited literature antagonizing Chipotle. Is Chipotle Really Healthier Than

McDonald's? by Quentin Fottrell challenges the currently accepted notion of Chipotle as a

healthy fast food chain. The company is stated to have twice the calories of a Big Mac in one of

its burritos. The food at Chipotle is indeed fresher than that of its competitors, but even

McDonald's is now making significant efforts to improve the health of its menu. The article begs

the question of why Chipotle is given the "healthy halo" (Fottrell, 2014).

        Chipotle: OMG, by Ken Kurson recognizes Chipotle's prior success, but does not believe

the corporation will continue enjoying the same levels of growth it has seen in the past. Much of

Chipotle's prosperity so far could be attributed to the favorable markets for food and labor costs

(Chipotle's largest expenses), its corporate message of "food with integrity" and its ability to

profitably expand into new markets. Soon, the enterprise may run out of options regarding

growth, and the increased cost of natural produce as well as ongoing pressure on the minimum

wage could result in a loss of revenue. Historically, investors have been skeptical of the brand, as

they may respond negatively to these limitations in the future (Kurson, 2014).

9

Conclusion:

Fast-casual dining has grown at a rapid pace in recent years and should continue

expanding in the future, due to the ongoing trend of socially and health-conscious food. Chipotle

is a leader in the industry, as the enterprise has demonstrated its ability to captivate large

segments of the population--particularly young, connected and authenticity-seeking individuals.

As this demographic gains influence and wealth, the company will most likely skyrocket in

value, further establishing itself as an exemplary brand in today's ever-changing market.

10

Hypotheses:

Males will be more inclined to order burritos, while females will favor bowls. This

hypothesis is mainly based on prior personal experience, as gender has seemed to play a major

role in determining the burrito versus bowl dilemma.

Customers dining at Chipotle in groups will be more likely than those who are alone to

act dishonestly and fill their water cups with soda. Chipotle provides its consumers free water

cups with every purchase, but charges extra for a soda cup to be filled with a choice of fountain

drinks. Often times, people will take advantage of this policy, asking for free water cups and

actually filling them with soda. This hypothesis is based on the theory that one dishonest member

of a group may act as an influence to other members. The whole party will deem it acceptable to

fill their water cups with soda if one member starts the trend.

As a follow up to the previous hypothesis, every specific dining group will have unique

behaviors distinguishing itself from other dining groups. In other words, each member of a group

will be more likely to mirror his/her friends' tendencies, providing the group with a uniform and

consistent image. Again, honesty regarding water cups will be used to test the theory. Every

group will be examined individually, with the prediction being that it will either be

overwhelmingly honest or dishonest. The distribution will not be even throughout each of the

parties.

Individuals with a higher socio-economic status will be more likely to purchase

guacamole, the best example of a luxury item at Chipotle. Adding this signature dish to a burrito

costs an extra $2. Since guacamole is not a meat product, it does not offer high levels of protein

11

or have any other practical benefit. People simply enjoy the taste, and are willing to spend more

as a result.

Males will be more likely to request extra meat than females. This hypothesis is based on

the fact that men are generally bigger consumers of protein than women, resulting in a tendency

to purchase additional steak, chicken or carnitas among other available meat-products.

12

Exploratory Research:

Prior to the formal data collection, observations regarding Chipotle and its consumers had

to be made. Initial interviews and visits to Chipotle helped guide the template, illustrating

interesting aspects of the consumer decision making process. From this introductory research,

significant differences in customers' drinking behaviors and menu selections were detected,

resulting in the formulation of hypotheses and the overall study. Review of the literature

continued to establish a foundation from which to build upon with gathered data.

Qualitative data was gathered in the form of informal interviews with some of Chipotle's

customers. A common pattern for all the subjects was the support of Chipotle's stance on social

and environmental issues, but also a relative indifference to the brand's involvement with these

causes. One interviewee, a freshman in college, called Chipotle's efforts with animal rights and

its green initiative "a plus, but it doesn't affect (his) decision about Chipotle." In other words, he

would dine at the chain just as much regardless of its concern for animals and the environment.

An older subject in his fifties credited the quality of Chipotle's food for its success,

stating that he eats at the restaurant because "it has high quality, tasty ingredients that are also

relatively healthy for fast food." Another college freshman said he "does not eat at Chipotle as

much as (he) would like to in college, as (he) had more access to the chain in high school.

Everyone goes to Chipotle in high school." This lack of availability presents an area in which

future research can be done. If the company is not conveniently located for its valuable segment

of college students, it is not maximizing its profits, losing a large number of potential purchases.

13

Data Collection Method Description:

In this analysis, both qualitative and quantitative data were used. 40 individuals were

observed at a Richmond Chipotle branch from 8:30pm-10:00pm on Tuesday, November 11th.

This time may not be fully representative of consumption patterns at other hours, but provides a

reliable baseline for overall customer behavior.

The quantitative data was gathered in a partially subjective manner, using estimations for

age, ethnicity and socio-economic status. Other categories of quantitative data were collected

observationally, focusing on consumers' decisions regarding their purchases.

Qualitative data was gathered in the form of in depth, informal interviews with a few

Chipotle consumers. Questions asked the customers about their general opinions and preferences

regarding the brand. It was crucial to find out firsthand what factors attract the general public to

the company. The qualitative data provided the study with important details, supplementing the

purely mathematical analysis of quantitative data.

14

Findings, Conclusions and Managerial Implications:

Based on statistical results, a few correlations were found to be significant. Gender

indeed plays a role in determining a customer's decision to eat a burrito or bowl, with men

heavily favoring burritos and women showing a strong preference towards bowls. Males also

purchased extra meat far more than females, as not a single woman requested this protein

addition. Consumers are more likely to act dishonestly and fill their water cups with soda when

dining in a group, and the members of each party seem to have a great influence on their

companions.

The interviews provided a more in-depth analysis of Chipotle's consumers. Most

customers expressed their agreement with the company's devotion to environmental and social

causes, but stated that they would dine at Chipotle regardless of these efforts. Interviewees

supported the relative health of the restaurant, as well as the speed with which food is served.

Chipotle's lack of availability for college students was noted as a problem, with subjects having

eaten at the chain far more in high school than in college.

As a result of the qualitative data, some conclusions were reached. The brand seems to

attract most customers with its high quality food; Chipotle's involvement with animal rights and

the environment does not appear to be a major contributor to its total revenue. Further, Chipotle

indeed represents an ideal fast-casual food chain in the mind of consumers, satisfying their needs

with tasty food that can be ordered and eaten almost instantly. Finally, the company should

consider opening branches in close proximity to college campuses. College students represent

Chipotle's most attractive consumer segment, as the brand is very popular among the youth. If

15

the restaurant is not easily accessible to its most loyal consumers, these consumers may stop

dining at the chain, with Chipotle losing their loyalty altogether.

This study has implications for other businesses in fast-casual dining. Due to the

significant difference between males and females regarding burritos, bowls, and the option of

extra meat, it is likely that gender plays a major role in many other aspects of purchase behavior.

Firms can use this knowledge to detect their own products, or menu options, that may appeal

more to a certain gender. The findings regarding group behavior could prove useful to

corporations looking to understand the difference between a party and an individual. With the

knowledge that members of a group tend to mirror their companions' spending patterns,

companies could use marketing strategies designed to target consumers expected to influence

those around them. That is, brands could detect the personalities of typical group "leaders," and

market to gain the loyalty of these individuals. Wider-spread support would subsequently be

achieved, with the loyal customers spreading their influence and preferences to others around

them.

Overall, the collected data offers important information regarding Chipotle and its

consumers. The company should look into ways of benefiting from group dynamics, recognizing

the way in which a party of four may essentially act as one person purchasing four times the

food. Further, the firm can now market differently to males and females, using a differentiated

strategy to appeal to bowl-loving women and burrito-craving men in search of additional protein

for their diet. Chipotle may also want to implement a stricter policy with regard to water cups

and soda, as many consumers are currently cheating the system and robbing Chipotle of its

possible revenue. If the company utilizes these significant observations, it should continue to

gain popularity and remain a leader in the fast-casual industry for years to come.

16

Data Analysis:

Water cup or soda Burrito or bowl Eat in or take out Guacamole? Extra meat? Alone? Chips?

bowl take out yes no no no Color coding demonstrates specific dining groups:burrito take out yes yes no no Adjacent customers with the same color ate together.burrito take out yes yes no yes Observations: Data is relatively consistent within a given dining group.

soda burrito eat in yes yes no no There were no picked up orders, as every customer waited in line.water (soda) burrito eat in yes yes no no Not many customers purchased a soda up or chips.water (soda) burrito eat in no yes no yes Most of the observed customers were relatively young.soda burrito eat in no yes no yes No hispanics were observed.

burrito take out no yes yes noburrito take out no no no noburrito take out no no no nobowl take out no no no noburrito take out no no no nobowl take out no no yes nobowl take out no no yes noburrito take out no no yes no

water (soda) burrito take out no yes no nowater (soda) bowl take out yes no no no

bowl take out yes no yes nowater burrito eat in no no no nowater bowl eat in no yes no nowater (soda) burrito eat in yes yes no nowater (soda) bowl eat in yes no no nowater (soda) burrito eat in no no no nowater (soda) bowl eat in no yes no no

bowl take out no no yes nobowl take out no no yes no

water bowl take out no no no nowater bowl take out no no no nowater (soda) burrito take out no no no nowater (soda) burrito take out no no no no

burrito take out no no no noburrito take out no no no no

water bowl eat in yes no no nowater (soda) bowl eat in yes no no nowater (soda) burrito eat in no yes no nowater (soda) burrito eat in no yes no nowater (soda) burrito eat in yes yes no no Note: Adjacent customers highlighted in the same color ate together.

17

Graphical Representation of the Data:

f m0

5

10

15

20

25

30

13

27

Gender

Total

Coun

t

Under 18 18-22 25-40 50+0

5

10

15

20

25

30

1

26

11

2

Age

Total

Coun

t

18

5%

20%

75%

Total

asianblackwhite

2 3 4 502468

101214161820

5

13

18

4

Socio-economic status

Total

Status (1-5)

Coun

t

19

9%

27%

64%

Total

sodaWaterWater (soda)

bowl burrito0

5

10

15

20

25

18

22

Burrito vs. Bowl

Total

Coun

t

20

38%

63%

Total

eat inTake out

no yes0

5

10

15

20

25

3026

14

Guacamole?

Total

Coun

t

21

no yes0

5

10

15

20

25

3026

14

Extra Meat?

Total

Coun

t

With group Alone0

5

10

15

20

25

30

35 33

7

With a group or alone?

Total

Coun

t

22

Chi-Squared Tests:

α=0.05

Chi-Squared Tests for Groups and DrinksObserved ExpectedGroup # Honest Dishonest Group # Honest Dishonest

1 2 0 1 1.212121 0.7878792 2 0 2 1.212121 0.7878793 2 1 3 1.818182 1.1818184 2 0 4 1.212121 0.7878795 2 0 5 1.212121 0.7878796 0 2 6 1.212121 0.7878797 2 0 7 1.212121 0.7878798 0 4 8 2.424242 1.5757589 2 0 9 1.212121 0.787879

10 0 2 10 1.212121 0.78787911 2 0 11 1.212121 0.78787912 1 1 12 1.212121 0.78787913 0 3 13 1.818182 1.18181814 3 0 14 1.818182 1.181818

p=0.0087257. Since this value is less than α, there is strong statistical evidence showing a correlation within specific groups with regard to drinking behaviors. Honest behavior is defined by anyone who filled their water cup with water, anyone who paid for a soda cup, and anyone who did not ask for a cup at all. Dishonest behavior refers to those who chose to fill their free water cups with soda.

23

Chi-Squared Test for Guacamole vs. Socio-economic Status (SES)Observed ExpectedSES Guacamole No Guacamole SES Guacamole No Guacamole

1 0 0 1 0 02 1 4 2 1.75 3.253 2 11 3 4.55 8.454 9 9 4 6.3 11.75 2 2 5 1.4 2.6

p=0.18165. Since this value is greater than α, there is not sufficient statistical evidence showing a correlation between guacamole consumption and socio-economic status.

Chi-Squared Test for Gender vs. Extra MeatObserved ExpectedGender Extra Meat No Extra Meat Gender Extra Meat No Extra MeatMale 14 13 Male 9.45 17.55Female 0 13 Female 4.55 8.45

p=0.00128. Since this value is less than α, there is strong statistical evidence showing a correlation between gender and the consumption of extra meat.

0 4 1 0 1 0 0 00 4 0 0 1 1 0 00 4 0 0 1 1 0 0

3.525 22 25 14 14 730 white c average so 19 did not 22 ordered 25 ordered 14 ordered14 ordered7 people at

p=0.00486. Since this value is less than α, there is strong statistical evidence showing a correlation between gender and the decision of whether to purchase a burrito or a bowl.

24

Chi-Squared Test for Individual vs Group BehaviorObserved ExpectedAlone? Honest Dishonest Alone? Honest DishonestYes 7 0 Yes 4.725 2.275No 20 13 No 22.275 10.725

p=0.04326. Since this value is less than α, there is strong statistical evidence showing a correlation between whether or not individuals were alone and whether or not these individuals chose to fill their water cups with soda. Again, the individuals who chose to fill their water cups with soda are regarded as dishonest in this study.

25

Digital Story: https://www.youtube.com/watch?v=mJxVoRdMHBg&feature=youtu.be

Narrative:

Chipotle has become one of the most successful dining chains in the world. Its ability to

attract millennials as well as many other healthy and environmentally-conscious consumers has

been crucial to the company's profitability. Today, Chipotle has over 1600 locations around the

globe.

Steve Ells founded the company in 1993, and soon developed a clear vision for starting a

new kind of food. Ells' appreciation for natural produce and animal rights began in 1999 when he

tasted the difference, trying hogs raised in super-regulated environments. After realizing that

these hogs were substantially more delicious, Ells made it his mission to serve his customers

"food with integrity," also promising them fair treatment of all meat products.

As part of the brand's effort to raise consumer awareness, Chipotle created Farmed and

Dangerous, a fun and entertaining TV show demonstrating how various foods are made. The

company really wants the public to know the difference between their production process and

those of other enterprises, highlighting this distinction in the series. Chipotle also differentiates

itself through its environmentalism, supporting family-run farms as opposed to wasteful

industrial ranching. The chain strictly uses 100% recycled content in its napkins.

Further, Chipotle has creatively expressed its core beliefs through its Scarecrow

commercials. These ads show the deprecating effects of industrialization on food consumption,

portraying the company as a beacon of hope in a polluted world filled with monotony.

Despite its virtues, Chipotle attracts most people with the tastiness of its burritos. The

burrito is the most popular menu option at the chain, as customers can choose to stuff the tortilla

26

with an array of ingredients. These include rice, beans, chicken, steak, tomato, corn, cheese,

guacamole and lettuce among many others. This variety presents a delicious combo for almost

anyone, luring a good number of consumers.

Secret menu options may also be popular, with the famed Quesarito leading the way.

Secret menus are utilized in many restaurants, providing customers with a feeling of being in the

know. As a result, the restaurants are rewarded with added loyalty from their diners, getting

maximum profits from their most attractive consumer segment.

Overall, Chipotle is a brand with many strengths, growing at an incredible rate since its

creation. A company that started with just one restaurant has now developed to have thousands,

growing into international markets. The corporation has created ShopHouse to further bolster its

profits, trying its hand at Asian cuisine. The general public is sold on Chipotle, especially

younger consumers, or millenials, who highly value their health, the rights of animals, and the

environment. As these consumers gain influence and wealth, the company should continue to

expand and prosper.

27

Data Collection Template:

Date: __________ Day of Week: __________ Time of Day: __________

Gender: (Categorical) Male: ________ Female: ________

Age Estimate: __________ (Ratio)

Ethnicity: White: ________ Asian: ________ Hispanic: ________

(Categorical) African American: ________ Other: ________

Socio-economic status: (Ordinal)

Lower Middle Upper

1 2 3 4 5

Wait in line or pick-up: __________ (Categorical)

Eat in or take out: __________ (Categorical)

With friends/family: Y__________ N__________ (Categorical)

Burrito or bowl: __________ (Categorical)

Other: __________

Water cup or soda: __________ (Categorical)

If water cup, filled with water or soda: __________

Order beans: Y__________ N __________ (Categorical)

Extra meat: Y__________ N__________ (Categorical)

Order guacamole: Y__________ N__________ (Categorical)

Order chips: Y__________ N__________ (Categorical)

28

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